Response to Elliot Sims editorial in the Winnipeg Free Press entitled Manitobans don’t want the CPP tax hike (published Dec 21/15)

Elliot Sims couldn’t be more wrong when he argues “Manitobans don’t want the CPP tax hike” (Dec 21, 2015). CPP contributions are not a tax. They are savings put aside in return for a pension benefit in retirement. More and more Canadian are worrying about not having enough income to retire, including the nearly two in three Canadian workers who have no workplace pension plan. With baby boomers about to retire and seniors’ poverty rates on the rise, now is precisely the time we need Finance Ministers to move forward with a universal expansion of the CPP. Sims argues instead for voluntary pension options, but the CPP has a better track record. The CPP is a fair – it’s paid for jointly by workers and employers into a pension plan that’s safe and secure. The CPP benefits everyone – unlike voluntary pension schemes, the CPP provides for all workers, and moves with workers as they move between different workplaces over the course of their careers. And the CPP is cost-effective – in contrast to smaller voluntary schemes, the CPP has low management fees and a proven track record of providing guaranteed benefits. Canadians work hard throughout their lives and deserve a fair pension when they retire.

Kevin Rebeck,
President, MFL
Published December 23, 2015